Magic Johnson’s name is synonymous with basketball greatness. On the court, he dazzled fans with his iconic “no-look” passes and legendary championship runs with the Los Angeles Lakers. But his success extends far beyond the hardwood. In recent years, Johnson’s achieved another impressive feat: becoming a billionaire. In this article, we take a look at the various ventures that propelled him to the exclusive billionaire club and explore how his strategic investments and business acumen have made him one of the most successful athletes-turned-entrepreneurs in history.
Magic Johnson’s 2024 Net Worth
Magic Johnson, whose complete real name is Earvin Johnson Jr., has an estimated net worth of $1.2 billion, as of June 2024. His wealth comes from a combination of sources, including his NBA salary during his playing years, endorsement deals, and his investment company which has invested in a variety of businesses. Continue reading below to know more about his diverse sources of income.
Magic Johnson as an athlete
Magic Johnson was a legendary NBA player who spent his entire 13-year professional career with the Los Angeles Lakers. He was selected as the first overall pick in the 1979 NBA Draft and went on to have an illustrious career, winning 5 NBA championships with the Lakers.
During his NBA playing career, Johnson earned a total of $39.3 million in salary, according to Sportskeeda. This included a 25-year, $25 million contract that he signed with the Lakers, and didn’t include his earnings from several endorsements due to his popularity as a basketball player. At his peak, he reportedly brought in between $2 million and $4 million per year in endorsements.
Johnson was an incredibly talented and versatile player, known for his exceptional court vision and passing ability. He was a 12-time NBA All-Star, 3-time NBA Finals MVP, and 3-time NBA MVP. He led the league in assists 4 times and holds the NBA record for career assists per game with 11.2.
Despite his relatively modest playing career earnings compared to today’s NBA salaries, Johnson was able to leverage his basketball fame and success into a highly lucrative business career after retiring in 1991.
Before the NBA, Johnson led Michigan State University to a national championship in 1979.
Magic Johnson as a businessman
The largest portion of Magic Johnson’s wealth stems from his investment company, Magic Johnson Enterprises (MJE). Founded in 1987, MJE has invested in a variety of businesses, including:
Movie theaters
In partnership with Sony Pictures, he opened 100 movie theaters called Magic Johnson Theaters in underserved urban areas, which proved to be highly successful. He also had a partnership with AMC Theaters, which also contributed to his income.
Restaurants
Johnson partnered with Starbucks to open over 100 coffee shops in Black neighborhoods, selling them back to the company in 2010 for a reported $75 million profit.
MJE also acquired over 30 Burger King franchises around 2004, focusing on locations in underserved communities. These franchises reportedly saw a 20% increase in average sales thanks to Johnson’s association and focus on these communities. While the exact date is unclear, MJE eventually sold these Burger King franchises.
Sports Teams
Johnson also owns small ownership stakes in the NFL’s Washington Commanders, MLB’s Los Angeles Dodgers, WNBA’s Los Angeles Sparks, and MLS’ Los Angeles Football Club. Here’s a breakdown of his earnings from these sports teams:
Washington Commanders (NFL): Johnson owns a 4% stake in the Commanders, which were purchased for a record $6.05 billion. His investment in the Commanders is estimated to be around $242 million.
Los Angeles Dodgers (MLB): In 2012, Johnson invested $50 million to purchase a 2.3% stake in the Dodgers, which are now valued at $4.8 billion.
Los Angeles Sparks (WNBA): Johnson is a part-owner of the WNBA’s Los Angeles Sparks, though the exact size of his stake is not specified.
Los Angeles Football Club (MLS): In 2014, Johnson bought a minority stake in the MLS club LAFC, which was valued at $1 billion before Lionel Messi joined the league.
Insurance
The majority of Johnson’s fortune comes from a 60% ownership stake in life insurance company Equitrust, which has grown from $16 billion in assets under management to $26 billion since he took over in 2015.
Healthcare
In 2010, Magic Johnson joined a group of investors to acquire Simply Healthcare. The company provides healthcare services to Medicaid and Medicare recipients in Florida. This investment aligned with Johnson’s broader strategy of investing in businesses that serve underserved communities.
In 2014, Anthem Inc., a major health insurance company, acquired Simply Healthcare. The sale of Simply Healthcare to Anthem Inc. was reportedly valued at approximately $1 billion. While the exact earnings for Johnson from this deal are not publicly disclosed, it is estimated that his share of the proceeds was substantial, contributing significantly to his net worth.
Other Ventures
MJE has also invested in Skydio, a California-based company that designs and manufactures autonomous flying cameras.
In 2013, Johnson joined Hero Ventures as an investor and board member. The former NBA star was particularly associated with their project, The Marvel Experience, a large-scale, touring interactive exhibit based on the popular Marvel Comics characters. It featured a 4D motion ride, interactive displays, and other immersive experiences.
Magic Johnson’s real estate investments
Magic Johnson has invested in various real estate ventures, including:
Luxury Estates: He owns several high-end properties, including a $14.5 million mansion in Bel Air and a $7.6 million beach house in Orange County, California, according to Architectural Digest.
Commercial Properties: Johnson has invested in commercial real estate, including office complexes and retail spaces, which generate steady cash flow and have the potential for significant appreciation.
Urban Revitalization Projects: He has partnered with Canyon Capital to invest in urban revitalization projects, creating 4.5 million square feet of retail and commercial space and generating nearly $2 billion in value.
Residential Properties: Johnson owns properties in Beverly Hills, Southern California, and Las Vegas, including a five-bedroom, six-bathroom mansion with a two-lane bowling alley and other amenities.
Sources: Forbes, Sportskeeda, Architectural Digest
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